So, What’s the Deal with Leasing?

If you’ve ever wondered what the difference is between a Nissan lease and purchasing with a loan, then this next post is for you. We’re going to explore the many benefits of leasing your next new Nissan car, SUV, or truck, how a lease can differ from purchasing with a loan, and how you can decide which financing offer is right for you!

What Does it Mean to Leave a Vehicle?

Leasing a car means you take possession of the vehicle for an agreed-upon amount of time (most leases run between two to five years) and for an agreed-upon amount of money, or the “monthly payment.” This differs from purchasing in that you don’t own the vehicle, you’re instead paying for the right to use the vehicle during the terms of your lease, but the vehicle still belongs to wherever you leased from. This also means that you return the vehicle at the end of your lease, which you wouldn’t do if you purchased. When you enter into a lease agreement, you’ll take passion of the vehicle for the term limits, but there are a few restrictions on how you can use the vehicle. Most leases stipulate how the vehicle should be maintained, how many miles you’re allotted to drive, and leases usually restrict any customization, since the vehicle doesn’t really belong to you. If you go over the allotted mileage or you don’t adhere to the maintenance schedule, there’s a chance you could face penalty fees at the end of your lease, so that’s something to be aware of going in!

What are the Benefits to Leasing?

When it comes to the benefits of leasing, there are quite a few!

  • Because lease payments are based on the amount of depreciation rather than the full cost of the vehicle, monthly payments tend to be lower than those of a loan.
  • With leasing, it’s easy to keep current with the freshest vehicles and most cutting-edge technology because most lease terms are within five years, meaning at the end of your lease, you can turn your vehicle in and move on to your next with nary a hiccup in between.
  • Because most leases are for new vehicles, there’s a good chance your leased vehicle will remain under the manufacturer’s warranty for the duration of your lease, which means the cost of repair might be covered for you, whereas with a loan, once the warranty is over, you’re responsible for the full cost of repair and maintenance.
  • When you drive off the lot in a new car you’ve purchased with a loan, the car instantly takes a depreciation hit. That’s what GAP insurance is for—to cover the difference between what you owe on the vehicle and what the vehicle is currently worth, if what you owe is greater than its residual value. With leasing, however, you can skip the GAP insurance! Your monthly payments reflect only the cost of depreciation, so you don’t even have to bother with GAP insurance.

Which Choice is Right for Me?

While we can’t answer that question for you outright, our financing experts are more than happy to speak with you and answer any questions you might still have in order to help you to your final decision. Here are some of the reasons drivers from Cuyahoga Falls, Akron, Hudson, New Franklin, and Kent, OH prefer a lease over a loan:

  • Some folks prefer a lease over a loan because they want a new, fresh model every few years, and leasing allows you to return your vehicle at the end of the lease and move seamlessly onto another one!
  • Some folks prefer the immediate cost-savings of lower monthly payments to the long-term payoff of building equity in a vehicle.
  • Some folks like the idea of staying in-warranty for the duration of ownership.

As you can see, there are plenty of reasons to consider a Nissan lease, and if you think leasing might be the right path for you, come on in to see us and sit down with someone from our Finance Department to discuss which offers best help you meet your goals!

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